Appendix 2.6
Growth Deal Award Letter, July 2014
STOKE-ON-TRENT AND STAFFORDSHIRE GROWTH DEAL
The Stoke-on-Trent and Staffordshire Growth Deal will open up five key employment sites identified in the Stoke-onTrent and Staffordshire City Deal which was agreed with Government in March 2014. The Growth Deal will also build
the new Stafford Western Access highway to ease congestion into Stafford and make further employment and
housing sites viable.
The Growth Deal will, subject to a satisfactory conclusion of the funding agreement, bring together local, national and
private funding as well as new freedoms and flexibilities to focus on the key priority areas as identified in the Local
Enterprise Partnership’s Strategic Economic Plan:
Opening up access to key employment sites identified in the City Deal
Improving connectivity and easing congestion and
Sector growth and a skilled workforce.
Stoke-on-Trent and Staffordshire Local Enterprise Partnership has secured £82.3m from the Government’s Local
Growth fund to support economic growth in the area – with £13.6m of funding confirmed for 2015-16 and
£14.1m confirmed for 2016-17 to 2021. This includes:
As part of the Government’s ongoing commitment to the Stoke-on-Trent and Staffordshire LEP a provisional
award of a further £34m for projects starting in 2016 and beyond; and
£20.6m of funding which the Government has previously committed as part of Local Growth Deal funding to
the area.
This substantial investment from Government will bring forward at least £19m of additional investment from local
partners and the private sector. Combined together this will create a total new investment package of £101.3m
for the Stoke-on-Trent and Staffordshire area.
By 2021, this Deal will create at least 5,000 jobs and allow 1,000 new homes to be built.
The Stoke-on-Trent and Staffordshire Local Enterprise Partnership brings together Stoke-on-Trent City Council,
Staffordshire County Council, Cannock Chase District Council, East Staffordshire Borough Council, Lichfield District
Council, Newcastle-under-Lyme Borough Council, Staffordshire Moorlands District Council, Stafford Borough
Council, South Staffordshire Council, Tamworth Borough Council, Staffordshire Chambers of Commerce, Burton and
District Chamber of Commerce, Chase Chamber of Commerce, Lichfield & Tamworth Chamber of Commerce,
Federation of Small Businesses, Keele University and Staffordshire University.
Summary of Stoke-on-Trent and Staffordshire Growth Deal projects and funding
Stoke-on-Trent and Staffordshire LEP Local Growth Fund breakdown (£m)
2015/6
2016 onwards
Total
Local Growth Fund award*
13.6
14.1
27.7
Previously committed funding
7.4
13.2
20.6
Provisional allocation to projects
starting in 2016/17 and beyond
-
34
34
Total
21.
61.3
82.3
*this includes LIF, HRA and competitive
These totals exclude match funding for European Social Fund (ESF) skills activities. The total amount of ESF skills
activity LEPs have planned in their draft strategies over the 7 year programme is currently just over 1 billion euros.
Actual skills ESF match will be used on the basis of the skills activity which is delivered at LEP level according to their
final strategies.
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The Government will hold discussions with Cannock Chase District Council to further consider their bid for an increase
in their Housing Revenue Account borrowing limit to allow affordable homes to be built.
Stoke-on-Trent and Staffordshire Local Enterprise Partnership and Central Government have agreed to coinvest in the following jointly-agreed priorities:
Build a new access from the A500 to reduce congestion and improve access to the Etruria Valley Enterprise
Area and the City Centre.
Bridge widening and local road improvements in Lichfield to access the Cappers Lane employment area and the
Lichfield Park employment site.
A new roundabout junction on the A34 to improve access to the Meaford employment site.
New traffic controlled access and road widening for the Bericote Four Ashes employment site.
Improvements to the Branston Interchange including signalisation of the roundabout and widening of the A38
slip roads.
Build the new Stafford Western Access Route to ease congestion in Stafford and facilitate further employment
and housing growth.
A Local Sustainable Transport Package for Stoke-on-Trent and Staffordshire which will improve connectivity
and reduce congestion, including projects to introduce smart ticketing, improve bus punctuality and improve city
centre and urban traffic management.
An Advanced Manufacturing Skills Hub that will provide the skills and engineers required for local priority
sectors and grow traineeships and apprenticeship opportunities.
Local flexibility over Growth Deal programme: The Government recognises the significant steps that the Stoke-onTrent and Staffordshire LEP have taken to deliver a successful and achievable Local Growth Deal and that the
programme agreed in this Growth Deal represents a step up in the ambition of, and therefore expectations on, the
LEP. The LEP will be expected to deliver all the projects in the Deal document and to achieve this, the Government
will disburse funds to the LEP quarterly in advance – with any changes to projects agreed each quarter. The Cities &
Local Growth Unit will work closely with the LEP to resolve any outstanding concerns that will allow the LEP to
achieve increased flexibility ahead of the first payments in April 2015.
The Growth Deal does not amount to an endorsement of everything submitted in the Strategic Economic Plan. All
development decisions for specific proposals must go through the normal planning process and be guided by local
plans taking into account all material considerations.
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The Stoke-on-Trent and Staffordshire Growth Deal
The investment secured by the Growth Deal will be focused on the following key areas to deliver transformative
growth:
Opening up access to key employment sites identified in the City Deal
Improving connectivity and easing congestion and
Sector growth and a skilled workforce.
Opening up access to key employment sites identified in the City Deal
This Growth Deal builds on the Stoke-on-Trent and Staffordshire City Deal which was agreed in March 2014. The City
Deal will deliver the UK’s first at-scale, low carbon, heat network system in Stoke-on-Trent establishing a new and
local approach to energy production, provide local and incoming businesses with support to develop the next
generation of products and materials, and bring employers and education together to ensure residents have the skills
and training that individuals and businesses need to drive the economy forward. In addition to this, the City Deal
identified the housing and employment sites that existing or new businesses needed to expand into. The top five
priority employment sites are being taken forward through this Growth Deal.
Stoke-on-Trent and Staffordshire LEP commitments
Central Government commitments
Invest £2.6m in the following projects:
Etruria Valley Enterprise Area (£2.5m)
Invest £11.6m in the following projects:
Etruria Valley Enterprise Area (£2.4m)
Meaford employment site (£0.1m)
Lichfield employment site (£4m)
Secure £4.8m from the private sector for the following
projects:
Lichfield employment site
Meaford employment site (£4.2m)
Bericote Four Ashes employment site (£1m)
Bericote Four Ashes employment site
Provisional allocations of £22.1m for:
Branston Interchange (£6m)
Meaford employment site
Etruria Valley Enterprise Area (£16.1m)
Pre-committed Local Growth Funding of £8.2m for:
Etruria Valley Enterprise Area (£8.2m).
Improving connectivity and easing congestion
Stoke-on-Trent and Staffordshire LEP commitments
Central Government commitments
Invest £4m in the following projects:
Stafford Western Access Route (£2m)
Invest £16.1m in the following project:
Stafford Western Access Route (£16.1m)
Provisional allocation of £5m for the following project:
Local Sustainable Transport Package (£5m)
Local Sustainable Transport Package (£2m)
Secure private sector funding of £5.8m for the following
projects:
Stafford Western Access
Pre-committed Local Growth Funding of £8.2m for
Stafford Western Access Route
Local Sustainable Transport Package
The Department for Transport and Network Rail
commit to more proactive engagement of the Local
Enterprise Partnership in the long-term rail planning
process (e.g. Route Studies) and in rail franchise
specification through targeted local engagement of
the Local Enterprise Partnership as part of an
Take a more proactive role in consultation on longterm rail planning and franchise specification, and
provide a co-ordinating role between constituent
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local authorities.
Take a more proactive role in consultation on longterm strategic road network planning and provide a
co-ordinating role between constituent local
authorities.
Commit to work with local partners and BT to
support delivery to support extension of superfast
broadband coverage to 90% of UK premises by
2016, via existing broadband projects.
enhanced consultation process. The Department for
Transport also commits to encourage bidders for
franchises to identify and take into account the
priorities of Local Enterprise Partnerships and other
key local stakeholders as part of the franchising
process, and will also encourage Train Operating
Companies to continue with, and enhance where
possible, their engagement with Local Enterprise
Partnerships as key local stakeholders.
Work with local partners to help ensure match
funding is in place for the next round of projects to
support extension of superfast broadband coverage
to 95% of UK premises by 2017.
The Highways Agency commits to developing a
more proactive and collaborative approaches to
promoting national and local growth and commits to
continue building strong relationships and working
arrangements with Local Enterprise Partnerships
and the Local Enterprise Partnership Network, in
the same way as with Local and Combined
Authorities and the Local Government
Association. Through its Route Strategies, the
Highways Agency will engage the Local Enterprise
Partnership in better understanding the challenges
and opportunities associated with the network and
to develop evidence based long-term plans to bring
about much needed local economic growth and
development, and commits to providing each Local
Enterprise Partnership with a named contact,
generally the relevant regional director. The
Highways Agency commits to forming a Growth and
Economic Development Group to support Local
Enterprise Partnerships at a national and subnational level, and a draft licence published on 23rd
June 2014 for the new Highway Agency company
includes a requirement to co-operate, which will
underpin the arrangements described above.
Sector growth and a skilled workforce
Improving skills levels is a key factor in stimulating local growth and taking advantage of new economic opportunities.
Government is committed to ensuring that adult skills provision is increasingly responsive to the needs of business
and supports local economic growth and jobs.
Stoke-on-Trent and Staffordshire LEP commitments
Central Government commitments
Invest £1.9m in an Advanced Manufacturing Skills
Hub.
Invest £6.9m in an Advanced Manufacturing Skills
Hub
The LEP will provide a clear model for establishing a
growth hub that joins up national, local, public and
private business support and provides a seamless
customer experience for businesses, which makes it
easy for them to get the right support at the right
time.
Government will provide £250,000 funding in 201516 for the delivery of the local growth hub subject to
minimum conditions that reflect the position agreed
by the Government review on business support and
services.
The Technology Strategy Board is committed to
supporting LEPs in developing the emerging Growth
Hubs and in exploring how LEPs can help drive up
local business awareness and engagement in
Technology Strategy Board programmes and
Open up new jobs associated with the Local Growth
Fund to local unemployed and the long-term
unemployed working closely with local and national
back to work initiatives. This is part of a wider
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expectation that local areas use the Social Value
Act, drawing on best practice across local councils
and central expertise in maximising social value.
initiatives
UKTI will commit to effectively communicating its
strategic priorities to LEPs and where possible help
them access relevant opportunities. UKTI will double
the number of Partnership Managers to 16. This will
ensure that UKTI can work more closely with LEPs
and help build their capability to secure more inward
investment.
Local Enterprise Partnerships are well-positioned to
enhance the current Careers Information, Advice
and Guidance offer by influencing the shape of
provision so that it meets the needs of the local
economy. Moreover, they have the ability to link
employers with education providers, can have
strategic influence over skills supply, and have the
ability to coordinate local services towards a shared
goal
Government through the Skills Funding Agency will
support the process to ensure that provision meets
local priorities and that increasing responsiveness is
delivered through a three-pronged approach:
o Procurement of new provision: LEPs will be
involved throughout the process and providers’
track records against LEP requirements will be
considered as part of this assessment
o Accountability: Providers will be required
through their funding agreements with the
Agency to explain to LEPs details of their
provision and planning and we are testing ways
in which they can be most effectively held to
account for being responsive to local economic
priorities. The Skills Funding Agency is trialling
Skills Incentives Pilots from 2014/15 in Stoke
and Staffordshire, the North East and West of
England, designed to explore the mechanisms
through which providers will account to LEPs for
delivery.
o Allocations and Intervention: In future years
providers’ records in delivering to LEP
requirements will be taken into account when
setting allocations and triggering interventions.
From 2015/16 the Skills Funding Agency will
take into account the outcomes of the Skills
Incentive Pilots in Stoke and Staffordshire, the
North East and West of England, in making
allocations to those providers in scope, subject
to evaluation of the pilots, these mechanisms
will be rolled out to other LEPs in future years
Facilitate stronger linkage between education
providers and local businesses and work with
relevant local stakeholders to communicate local
priorities and align the local offer to the National
Careers Service (NCS) providers ahead of the new
service’s roll-out in October 2014 in order to
augment the service.
Consider skills implications as part of decision taking
on growth strategies. Clearly articulate and evidence
skills priorities in the light of strategic national and
local growth opportunities and communicate them to
the FE and skills sector. Positively engage the FE
and skills sector in key strategic partnerships e.g.
Skills and Employment Boards. Recognise where
the private sector has a responsibility to invest in
skills provision and work with business and the skills
system to realise that investment.
Government will set out revised information for LEPs
on how they can take advantage of this approach
and options for seeking advice if provision is not
responsive to their needs. The Skills Funding
Agency will publish information during summer 2014
on how LEPs can influence the use of all skills
budgets in their localities, and the steps they can
take if they are dissatisfied with the pattern of
delivery.
Government will seek to improve the provision of
skills data for LEPs and will develop and publish
new reports that will quantify and assess
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responsiveness to local skills needs. In the summer
of 2014 the Skills Funding Agency will provide all
LEPs with a data set that updates them on the
provision delivered in their areas.
As part of the deal, the LEP will:
Strengthen governance: The Stoke-on-Trent and Staffordshire LEP is committed to reviewing its
governance arrangements by March 2015. This work has already begun with a clear focus on governance
arrangements that allow for effective and speedy decision making, absolute transparency, clear delegations
and accountability, and strong monitoring of programme delivery. The new arrangements are being
considered by the LEP Executive Board over the summer of 2014 with an aim to begin implementation of the
new arrangements throughout the autumn. This new approach will allow the LEP to hold delivery partners to
account for progress against project milestones and budgets on a monthly basis through business led
programme delivery boards, with the LEP holding ultimate accountability and decision making on funding
allocations. This approach combined with the freedoms and flexibilities afforded through the Growth Deal will
provide the business led LEP with the flexibility to reallocate resources within the scope of the agreed
programme, in consultation with central government, to ensure the LEPs, ambitious plans for economic
growth are achieved.
Ensure implementation and demonstrate success, by accepting the funding agreement, and by tracking
progress against milestones and agreed core metrics and outcomes in line with a monitoring and evaluation
framework. This will include agreeing monitoring metrics and reporting arrangements with the Government by
September 2014. The LEP will also produce an evaluation plan for the projects contained in the Deal before
April 2015.
Communicate the ongoing outputs and outcomes of the Deal to the local community and stakeholders
by publishing the Growth Deal and reporting regularly, and publically, on their progress to implement the
strategy, ensuring that local people understand how Government money is being spent via the Growth Deal,
and what the benefits are for them and the area. The Cities and Local Growth Unit will continue to work with
the LEPs on communications activities, and help make the links with other Government communications
teams.
Ensure value for money by developing robust processes that will guide local decision-making. This will
include agreeing an assurance framework with the Government by September 2014, building on existing local
and national frameworks.
Funding for projects starting in 2016/17 will be subject to conditions that Government will discuss with the LEP over
the next few weeks and months, along with establishing the best timetable for the project, taking into account
practicalities and affordability.
The Government commits to opening discussions with the LEP right away on its priorities for the next round of Growth
Deals.
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